Chow Company is considering the purchase of a piece of equipment costing $142,500. The equipment has an eight-year useful life and will generate $30,000 in annual cash flows. The company has a 10%...

Chow Company is considering the purchase of a piece of equipment costing $142,500. The equipment has an eight-year useful life and will generate $30,000 in annual cash flows. The company has a 10% required rate of return and uses the straight-line depreciation method. The internal rate of return on this equipment is closest to

a. 10%.

b. 13%.

c. 22%.

d. 43%.